SA is fast becoming the hi-tech gateway to Africa, although there is still a shortage of skills in the information and communication sector that makes skills development a priority, says Altron chairman Bill Venter.
Venter says in Altron`s latest annual report that the revenue of the top 40 information and communications technology (ICT) companies is now well over R110 billion a year.
However, "skills in the ICT sector are still very much in short supply and, therefore, skills development remains a priority," he says.
"The trend for many companies to embark on offshore investment programmes has continued, especially as far as the US and Europe is concerned. This is despite the fact that the stronger rand has reduced the operating profits of most companies selling their products and services through foreign subsidiaries."
Venter says prospects for the year ahead are once again clouded by uncertainty in the global arena.
"Although consensus forecasts predict a recovery later in 2003 and into 2004, there is little confidence that this will occur given structural difficulties in the world`s three largest economies.
"The rand`s strong rebound has already hampered exports, thus undoing some of the inroads made into key markets in recent years.
"In contrast, domestic spending should be helped by lower interest rates as the year progresses. Plans for expansion announced by private sector export-oriented industries in 2001 and 2002 are in danger of being impacted."
However, he says that despite global socio-political uncertainties, the balanced mix of Altron`s business and its continuing expansion and acquisition programmes, as well as a focus on costs and efficiencies, are expected to assist in underpinning the group`s performance in the current year.
"In particular, embracing transformation at the highest level remains one of the most pressing challenges for both our organisation and our country and this is being met with dedication, enthusiasm and optimism by the people of Altron."
For the year to 28 February 2003, Altron increased attributable earnings by 51% to R464.35 million on a 15% rise in revenue to R11.4 billion.
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